Samsung appears to have developed a workaround that is blocking FoxFi on Galaxy S II units, and the change is hitting Sprint customers as the Epic Touch 4G upgrade rolls out today. Several users have contacted us, reporting FoxFi no longer works after updating their Epic Touch 4G units to Android 4.0.

FoxFi is a tethering app that bypasses the tethering toll bridge adopted by Android in Gingerbread and newer versions. The toll bridge prompts users to add the applicable tethering plan to their account.

The legality of tethering, without carrier permission (and plan) has been hazy. In the FCC’s view, net neutrality permits tethering. However, the federal courts have disagreed, with the latest court rulings falling on the side of carriers. There are some exceptions, such as on the C-Block for Verizon Wireless 4G LTE customers. While Verizon objects to such restrictions, they also signed off on them… but are poised to challenge them in court.

Sprint used to offer unlimited data via tethering, but has curtailed to a 5 GB $29.99 tethering add-on, retroactive even to grandfathered customers that signed up for the unlimited tethering plan. While an ETF Out in our view, customers that were hit hardest encountered difficulty in jumping ship over the matter.

FoxFi works by leveraging Android Actions, a scripting workflow that bypasses the tethering toll prompt. FoxFi tells the Android System to initiate its own tethering mode, bypassing the carrier toll “booth” and plan verification system. It’s also been very effective, only HTC had thoroughly blocked it. LG now appears to be doing so on its newer handsets.

And, there’s good reason for the handset manufacturers not to. The most savvy evangelists are typically net neutrality supporters, and thus believe FoxFi is legitimate, at all times. As such, evangelists and prosumers are likely to pick devices that permit FoxFi, rather than block it.

The makers that, thus far, have embraced permitting FoxFi, have seen higher sales. Motorola and Samsung have been permitting FoxFi, where as HTC has struggled in the marketplace, along with LG. LG started blocking FoxFi on MetroPCS and other prepaid carrier handsets first.

The future for FoxFi is looking bleaker by the day, as carriers continue to resist open pipe tethering. LG has even begun to challenge its compatibility with Android by blocking USB proxies, which have historically facilitated USB tethering. USB tethering, with apps like Klink and PDANet being rendered inoperable. These apps utilize the USB Debugging mode, which allows proxies. Carriers have attempted to block these apps on the app stores, but thanks to Android’s openness, and sideloading, those efforts have largely failed.

Google, a supporter of Net Neutrality, has assisted tethering. Users can purchase tethering apps by switching to Wi-Fi, and logging back into the Google Play Store. And, it’s in Google’s interest to encourage both open pipes and tethering, as it’s much more likely to prompt users to engage with Google’s services on tablets and laptops. With 4G LTE, accessing YouTube and other high-bandwidth services will empower Google to better compete head on with carriers and other MSOs, with their own first-party multimedia content farms, networks, and other offerings.

Which again makes Google’s Nexus line a leveling factor. With strict adherence to Google’s Android rules, policies, and protocols, free tethering will live on inside Galaxy Nexus, and future Galaxy phones.

Update: FoxFi has posted a note on their Sprint download page that they are working on a solution to the Epic Touch 4G blockade, as well as a similar block on Galaxy S III smartphones.

Christopher Price is the Founding Editor of PhoneNews.com. Today, he leads the team building Console, Inc. - a new kind of Android™ device. He still likes to pontificate... a lot. You can visit his personal blog at ChristopherPrice.net.

Very interesting article as I currently use FoxFi on a Moto Razr Maxx on Verizon. You make mention that there are some exceptions to the restrictions on tethering “on the C-Block for Verizon Wireless 4G LTE customers. While Verizon objects to such restrictions, they also signed off on them… but are poised to challenge them in court.”

Do you have a source for this? There is a raging debate on HowardForums whether Verizon can throttle unlimited data plan users or restrict tethering for its 4G LTE users on the C-Block. Some say yes and some say no but no one can find any definitive language anywhere that explicitly states what Verizon can or cannot do on the C-Block. Any insight or links you can provide to shed light on this issue would be greatly appreciated.

However, Verizon has SAID they will not throttle anyone with a 4G LTE device, even when using a 3G EV-DO network.

The important thing is… consistency. Verizon CANNOT throttle your iPad just because you are using a smartphone SIM with unlimited data inside it, for example.

The C-Block terms do allow Verizon to throttle all unlimited data customers at a certain cutoff, but not based on what device or plan. It has to be universal to all customers with unlimited data, regardless of device. Again, thus far, Verizon has said that LTE-enabled devices with unlimited data will remain unthrottled until further notice which could come without notice.

Now, there are some extremes Verizon could exploit in the C-Block rules. For example, the C-Block is only in the 700 MHz. They could, (and I do mean could) enable LTE on the 700 MHz band, and refuse to allow a Smartphone SIM register on CDMA when it is outside of a smartphone, for example.

The main reason Verizon didn’t do that example, and probably won’t, is that in most cases it doesn’t matter. There’s not a major impact to the network for an unlimited data customer on CDMA, even if that one customer is a bandwidth hog.

The main reason Verizon doesn’t throttle unlimited data customers, is Sprint. Customers like me will bolt to Sprint in a heartbeat if our unlimited data is throttled, and Verizon would rather keep customers like me (who have unlimited data). Since we no longer get subsidies on devices, Verizon is probably keeping a profit even if I tear through 50 or 100 GB of data in a month.

Believe it or not, despite what many think of my commentary, I pay hundreds of dollars per month to Verizon Wireless. I get what I pay for, and I’m actually quite happy with the service. As I hope to expand on in future articles, I want _others_ to enjoy what I have… and Verizon no longer offers anything close to the plan I have.

Want further reading? Normally, I’d point you to search, but it’s under renovation (works, but not as much as I’d like):

Hey Chris I hear you bro I have 3 phones on the Verizon network, two with unlimited data and one phone (my phone) is currently using the fox-fi app. I have been using it since November of 2012 and when my DSL bill got too high I dropped it and I tethered 24/7,to the tune of 230 gig a month for 2 months using fox-fi. I always wondered why Verizon never said anything(I have a Galaxy Nexus)then I thought what you thought and that is probably because they knew my plan was to bolt to Sprint if they objected. I pay about 400.00 a month and in the first two years I paid about 480.00 a month so I guess they’d rather keep me as a customer than boot me off. I also am very happy with my service especially the customer service. I remember being on Sprint and waiting 15-25 minutes for someone to answer me then I’d have to wrestle with their attitudes, thank God for Verizon…

I have a Verizon Galaxy Nexus. Fox FI worked great until I updated to Jelly Bean a few days ago. Now Fox Fi isn’t working. LAMEROSITY EXTREME!

pffff.

Verizon is evil. I was getting 27 megs down and 12 megs up with anything 3 bars or more of 4G LTE. Fox Fi pumped that out to the WiFi PERFECTLY. No packet loss….no problems VOIPing through it on an 802.11 enabled VOIP handset. Seems like QoS was in fact working because I could not get the call to suck even dragging down a file at 2 megaBYTES a second from http://ftp.cse.buffalo.edu‘s Linux Mirror. Fox Fi works great. The performance is really a tribute to the Linux tcp/ip stack and the HAL’s for the devices involved, but Fox Fi must be properly written because it is allowing that tcp/ip stack to do it’s thing unencumbered. I get the exact same speed on the test whether or not I do it on the console of the phone itself using Firefox and flash speed test at speakeasy.net, or whather I do it on a WiFi connected device using Fox Fi to hotspot my phone.
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PLEASE PLEASE PLEASE PRETTY PLEASE I WILL DONATE PLEASE FIX FOX FI SOON.